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The global ground support equipment market size was USD 5,279.5 million in 2019. The global impact of COVID-19 has been unprecedented and staggering, with the aviation industry witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market will exhibit a huge decline of -20.4% in 2020. The market is projected to grow from USD 4202.5 million in 2020 to USD 7,819.6 million in 2030 at a CAGR of 6.41% in the 2020-2030 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Ground support equipment (GSE) is normally used at airports to provide service to the aircraft between flights. GSEs are primarily used to support safe operations of the aircraft before taking off and after landing at the airport. The GSE mainly involves various ground power operations such as cargo, aircraft mobility, and passenger loading operations. For quick accessibility, these GSEs are generally kept on a ramp near the terminal when not in use.
GSE supports the airport operation, especially for aircraft on the apron side called the terminal's service area. The key services include refueling, towing airplanes, freight carts, de-icing, portable water storage, cleaning, lavatory waste tank drainage, fire-fighting, emergency services, and passenger transport services.
A significant increase in air traffic and cargo transportation are the major factors driving the growth of the market. Recently, the Long Beach airport in California installed 15 electric chargers to power its equipment and reduced emissions The airport now uses electricity to power 100% of its commercial gates and further estimates that it will lower its nitrogen oxide emissions by almost two thousand pounds a year by 2023.
Aviation Industry is Likely to Experience Negative Market Growth due to the COVID-19 Pandemic
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Emission Control Regulations for GSE to Propel Market Growth
The aviation industry is constantly focusing on the adoption of greener products. Regulatory authorities are continuously working on implementing improved guidelines towards eco-friendly processes and technologies. The increasing awareness about environmental concerns is likely to create a huge demand for eco-friendly and greener variants of aircraft ground support equipment (AGSE) in the aviation sector.
Such initiatives by the companies backed by stringent emission control regulations will boost the market growth during the forecast period.
Growing Popularity of Used and Refurbished Products to Accelerate Growth
Major airlines are focusing on the modernization of ground support equipment. Airport GSE businesses are paying attention to refurbishing old equipment to maximize lifespan and add upgrades that help make significant savings in the costs. For instance, the London Luton airport uses a revolutionary system of collective pooling of GSE such as belt loaders, aircraft stairs, and others. This saves significant cost, boosts aircraft turnaround, reduces congestion, and overall delays.
Increasing Air Traffic and Cargo Transportation to Favor Market Growth
An increase in the overall air traffic and cargo transportation has contributed to the growth of the market. Furthermore, the growing adoption of advanced GSE by airports drives the market across the globe. According to the data released by the International Air Transport Association (IATA), 61.2 million metric tons of cargo were transported in 2019 and are expected to increase at a CAGR of 4.1% for the next five years.
In addition to this, a total of 4.3 billion passengers were carried by air transport in 2018, which was 6.1% more than in 2017. IATA’s 20-year air passenger forecast shows that the number of air travelers could double to 8.2 billion by the end of 2037. This is expected to drive ground support equipment market growth.
Increasing Focus on Enhancement of Operational Efficiency to Augment Growth
Airports are making continuous improvements to increase their operational efficiency and decrease turnaround time. The development of underground GSE has helped reduce operational time and reduce the congestion of equipment in airports.
For instance, airports in the Caribbean and Latin America have been adopting collaborative decision-making (CDM) tools to improve operational efficiency since June 2019. The CDM tool works on real-time information exchange that improves the predictability of operations by increasing situational awareness and enhancing planning quality. The adoption of advanced GSE drives the growth of the market.
Inadequate Airport Infrastructure for Charging Electric GSE to Hamper Market Growth
There has been an increased use of electric GSE to reduce non-aircraft exhaust emissions at airports. However, the lack of charging infrastructure for electric products is the major factor that hampers the market growth. Besides, the high acquisition cost of electric products and the limited life span of most of the equipment that requires continuous replacement are some of the restraining factors for the growth of the market.
Hi-lift Loader Segment to Gain Momentum
Based on type, the market is segmented into tugs & tractors, pushback tractors, passenger boarding lifts & steps, belt loaders, hi-lift loaders, de/ anti-icing vehicles, water service vehicles, lavatory service vehicles, and others.
The tugs & tractors (TT) segment held the highest ground support equipment market share in 2019. The growth is attributed to the increasing air traffic and the rapid expansion of the aviation sector across the globe. The introduction of high capacity towbarless tractors will drive the segment growth.
The high lift loader segment will showcase remarkable growth during the forecast period. The growing cargo transportation and the increasing investment in research & development to develop high capacity lift loaders is likely to drive the growth of the segment.
The passenger boarding lift & step segment is estimated to show significant growth in the market owing to the increasing number of air travelers and airports across the globe.
Increasing Demand for Electric Vehicles Due to Green Initiatives by Governments and Airlines to Drive Segment Growth
Based on the power source, the GSE market is classified into non-electric, electric, hybrid, fuel cell vehicle (FCV), and advanced GSE.
The non-electric segment held the highest market share in 2019. The presence of non-electric equipment in airports such as tractors, lavatory vehicles, water service vehicles, belt loaders, high lift loader vehicles, and others has contributed to the maximum share in the market. The increasing demand for these vehicles due to their applications is further expected to drive the growth of the segment.
The electric GSE segment will showcase significant growth during the forecast period. The growth is attributed to the increasing focus on the government’s green initiatives and the rising demand for low carbon emission products. The electric-powered GSE creates less pollution compared to conventional GSEs.
The fuel cell vehicle (FCV) segment will showcase significant growth during the forecast period. Key players are focusing on developing hydrogen fuel cells that enable airports to reduce carbon emissions to zero. Thus, the rising go green campaigns drive the growth of the segment during the forecast period.
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Growing Number of Airports Will Propel New Sales Growth
By ownership, the market is classified into new sales, used sales, rental/ lease.
Among these, the new sales segment dominated the market in 2019. A rising number of air passengers, increasing airport modernization programs, and expansion of the aviation sector is expected to drive the growth of the segment.
The rental/ lease segment is estimated to grow with a significant market share during the forecast period due to the rising demand for ground support equipment from small airlines owing to their affordability for airport operations.
The used sales segment will showcase moderate growth owing to increasing demand from airports for refurbished equipment.
North America Ground Support Equipment Market Size, 2019 (USD Million)
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The ground support equipment market has been segmented into North America, Europe, Asia Pacific, and the Rest of the World.
North America held the highest share in the market in 2019. The presence of a large number of airports, a well-flourished aviation industry, rising investments in research & development of aviation GSE drives the growth of the market across the region.
Asia-Pacific will showcase the highest growth during the forecast period. The growth is attributed to the rising investment in the aviation sector from emerging economies such as China and India, and rapid urbanization leads to the expansion of the aviation industry. According to the International Air Transports Association (IATA), China will be the largest aviation market in terms of air travelers and surpass the U.S. by 2024. Furthermore, India is planning to build 100 new airports by 2024.
Europe is likely to showcase significant growth due to the rising air travelers and the increasing spending on aviation from developed countries such as Germany, France, the U.K, and others. In addition to this, the presence of key players such as Mallaghan, TLD, Cavotec SA, Kalmar Motor AB, and others is anticipated to boost the market growth in the region.
The market in the rest of the world is expected to register remarkable growth during the forecast period. This growth is due to the increasing air traffic and the growing aviation industry in the Middle Eastern countries such as Saudi Arabia, Turkey, and Israel.
Key Players Focus on Business Expansion Through Contracts and Partnerships with Airlines
Original equipment manufacturers (OEMs) are majorly focusing on business expansion through contracts with airlines of different countries. In March 2020, Cavotec SA signed two ground support equipment contracts with Chinese airports. The company will supply electrically powered systems and a range of fueling systems to Chengdu Tianfu International Airport. Additionally, the company will supply more than 100 coilers units, 400Hz connectors, and service cables at three terminals at Beijing Capital International Airport. The value of both contracts is worth USD 3.29 million.
An Infographic Representation of Ground Support Equipment Market
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The ground support equipment market research report provides an in-depth technical analysis of the market and majorly focuses on key aspects such as the leading market players, COVID-19 effect on the market, leading technological trends, and research ideology of the product. Besides this, the report offers insights into the market trends and highlights key industry developments & trends. In addition to the aforesaid factors, the report provides multiple factors that will contribute to the growth of the market during the forecast period.
Value (USD million)
By Power Source
Fortune Business Insights says that the global market size was USD 5,279.5 million in 2019 and is projected to reach USD 7,819.6 million by 2030.
In 2019, North America market stood at USD 1,732.9 million.
Growing at a CAGR of 6.41%, the market will exhibit steady growth in the forecast period (2020-2030).
The tugs & tractors (TT) segment is expected to be the leading segment in this market during the forecast period.
The increasing air traffic and cargo transportation is expected to propel the growth of the market.
Textron Ground Support Equipment Inc., TLD, Tronair, Kalmar Motor AB, JBT, Rheinmetall AG, ITW GSE, Cavotec SA, Guangtai, AERO SPECIALTIES INC., Mallaghan are major players in the global market.
North America dominated the market share in 2019.
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